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HomeMy WebLinkAboutCity of Angoon Appendices 2CENTRAL COUNCIL t1impt and hai0a m0ian tmes of alaska ANDREW P. HOPE BUILDING 320 West Willoughby Avenue • Suite 300 Juneau, Alaska 99801-1726 CENTRAL COUNCIL OF TLINGIT AND HAIDA INDIAN TRIBES OF ALASKA Seventy -Fourth Annual Tribal Assembly April 15-18, 2009 Juneau, Alaska Resolution TA/ 09-46 Title: Renewable Energy and Alternative Fuels for our Communities By: Delegates Bob Loescher, Floyd Kookesh, Selina Everson WHEREAS, Central Council of Tlingit and Haida Indian Tribes of Alaska (Central Council) is a federally recognized tribe of more than 26,000 tribal citizens; and WHEREAS, the cost of energy and the cost of fuels has continued to increase and continues to be a burden on tribal members and their businesses; and WHEREAS, despite these millions of dollars of public investments, many of our Southeast Alaskan Native communities remain isolated when alternatives such as line extensions can connect these communities to existing low cost utilities; WHEREAS, protectionist practices including maintaining unfair status quo by the Regulatory Commission of Alaska with respect to generating and transmitting utility districts disproportionately impacts predominately Alaska Native communities; WHEREAS, the Executive Council adopted the 2009 Strategic Energy Plan; and WHEREAS, to bring meaningful change to our region we need a systemic fix through a Regional Transmission Organization (RTO), and that development of a community -run RTO will facilitate an electrical intertie between our communities and their energy sources; and WHEREAS, Central Council is the best single source in Southeast Alaska to help our communities to receive and account for public and private funds for energy related projects, programs and development; and WHEREAS, the Federal and State government have subsidized and awarded hundreds of millions of dollars to urban and predominately non -Native communities to develop hydropower and transmission lines here in Southeast Alaska; and TEL. 907-586-1432 www.ccthita.org TOLL FREE 800-344-1432 TA Resolution 09-46 Page 2 of 3 WHEREAS, despite these millions of dollars of public investments, many of our Southeast Alaskan Native communities are on diesel generation and high administrative and overhead costs associated with diesel generation; and WHEREAS, we have Native village corporations and Native communities such as Haida Corporation, Kake Tribal Corporation, Kootznoowoo Incorporated and the City of Angoon filing federal permits, and making investments and partnerships in renewable energy development and operations; and WHEREAS, Native entities should own and control Southeast Alaska renewable energy resources where possible and support the needed public investments in transmission line extensions to comiect our communities; and WHEREAS, as a result of this situation many of these entrepreneurial Native village corporations and in some cases desperate communities deserve full political and financial support and encouragement from all tribal entities, ANCSA corporations and Native non-profit agencies for their leadership and investments to help themselves to lead and assist our conununities toward renewable energy development and alternative fuels in order to lower energy costs for our people, to help end outmigration from their communities, to create renewable energy jobs and to preserve the economic livelihood that is impacting our diesel disadvantaged communities; and 3 NOW THEREFORE BE IT RESOLVED, that the Seventy -Fourth General Assembly of Central Council of Tlingit and Haida Indian Tribes of Alaska convened in Juneau, Alaska on April 15 — 18, 2009 hereby reaffirms Resolution GA 08-03, Declaration of Emergency Related to Energy; and BE IT FURTHER RESOLVED, that the Central Council supports the Coastal Community Gas Utility Project for twenty four communities, the AK -BC energy transmission line near Wrangell, Reynolds Creek project for Haida Corporation and Hydaburg, Thayer Creek project for Kootznoowoo Incorporated, Scenery Lake project for the City of Angoon and Kootznoowoo, Incorporated and Cascade Creek project for Kake Tribal Corporation because all of these projects will reduce the cost of power and fuels to our rural Native communities; and BE IT FURTHER RESOLVED, that the federal and state government should immediately fund our Southeast Intertie under the Central Council Regional Transmission Authority (RTA) proposal; and BE IT FURTHER RESOLVED that we request that the federal and state government support all Native owned, controlled and those that have Native participation in renewable energy and alternative fuels projects that will provide much needed low cost renewable energy resources for our people to end outmigration, increase our economic development, increase our TA Resolution 09-46 Page 3 of 3 job base and to better our current and future generations struggling to raise families in our traditional rural and urban communities that are diesel disadvantaged; and BE IT FINALLY RESOLVED that tribal implementation of the energy program as described above is subject to available federal, state and other funds and subject to approval of the Executive Committee upon recommendation of the Finance Committee. ADOPTED this 18`h day of April 2009, by the Seventy -Fourth Tribal Assembly of Central Council of Tlingit and Haida Indian Tribes of Alaska. CERTIFY President William E. Martin ATTEST O Tribal Secretary Michele Metz CITY OF ANGOON PO. BOX 189 - ANGOON, ALASKA 99820 - (907) 788-3653 - FAX (907) 788-3821 RE(-.FIvEO CITY OF ANGOON Ans RESOLUTION 09-05. A RESOULUTION OF THE CITY OF ANGOON, ALASKA, AUTHORIZING AND DIRECTING THE FILING OF MUNICIPAL PREFERENCE FEDERAL ENERGY REGULATORY COMMISSION PRELIMINARY PERMITS TO DEVELOP HYDROPOWER PROJECTS WITH KOOTZNOOWOO INCORPORATED WHEREAS, the City of Angoon is on record of supporting the private and public development of energy resources in Southeast Alaska and recognizing the important resource provided by Congress in ANILCA through Kootznoowoo Incorporated; WHEREAS, the City of Angoon has been in consultation with Kootznoowoo Incorporated, business entities, State, Tribal and Federal officials regarding energy issues impacting the City of Angoon; WHEREAS, the City of Angoon has the ability to file hydro -electric permits using their "municipal preference" as authorized by Federal Energy Regulatory Commission (FERC) regulations; WHEREAS, filing for federal hydro -electric preliminary permits will increase Angoon's ability to negotiate acceptable terms for low cost power in Angoon and Southeast Alaska with the additional benefits of providing for the communities economic well being by creating family wage jobs, job training, enhanced city revenues, and economic development opportunities associated with affordable power; WHEREAS, hydropower development is a clean industry, displaces diesel, and reduces carbon dioxide and green house gas emissions that these benefits are consistent with our way of life; WHEREAS, the City of Angoon has adopted an Energy Policy as outlined in the attached Resolution #08-01; NOW THEREFORE BE IT RESOLVED, that the City of Angoon authorizes the Mayor of Angoon to negotiate contracts with Kootznoowoo Incorporated and other business interests to file "municipal preference" hydro -electric power preliminary permits and all applications necessary to implement this resolution; and BE IT FURTHER RESOLVED, the Mayor is authorized to seek federal, state, Tribal and other funding for grants and other financial assistance to further the implementation of this resolution; BE IT FURTHER RESOLVED, that they Mayor is authorized to represent the City before all Tribal, federal, state, municipal and business agencies with regards to energy issues and the implementation of this resolution. ADOPTED, this 10`h day of December 2008, by the City of Angoon by a vote of 5 Yeas, 0 nays, 0 abstentions, and 2 absence. CERTIFIED ATTEST &jvlbUV�''Vv CITY CLERK Grand Camp ACaska Xative Brotherhood - (I - ) RESOLUTION #28-09 Title: Support for Angoon's Renewable Energy Developments WHEREAS, Southeast Alaska has abundant energy resources which are untapped, and where there is beginning to emerge Native corporation and Native community ownership of these resources; and WHEREAS, Angoon pays some of the highest energy costs in Southeast Alaska; and WHEREAS, the City of Angoon and Kootznoowoo Inc. have developed and signed an Angoon Energy Plan which identifies priorities and goals including a plan to reduce the cost of energy for Angoon through the development of renewable energy; and WHEREAS, the Angoon Community Association has provided strong letters of support to Kootznoowoo Inc. to develop and construct Thayer Lake Hydroelectric to its full potential and as the community's top energy priority, and WHEREAS, Kootznoowoo Inc. has successfully completed the eilvironmental work and record of decision necessary to secure a permit to construct an environmentally sound run of river hydroelectric project in Angoon in a Wilderness Monument; and WHEREAS, Kootznoowoo Inc. has received grants and is developing the Thayer Lake hydroelectric facility that it was granted rights to develop under ANILCA, and WHEREAS, The City of Angoon has filed on two FERC hydropower pen -nits: Ruth Lake and Scenery Lake to develop and bring low cost hydropower to all communities of Southeast Alaska, WHEREAS, there are important rural Alaska areas which are energy rich, but do not benefit from harnessing these energy sources due to insufficient or missing transmission assets, and NOW THEREFORE BE IT RESOLVED, that the Grand Camp of Alaska Native Brotherhood and Sisterhood wholly supports the leadership of the Kootznoowoo Inc. and the City of Angoon for claiming and developing energy resources under Native leadership and Native ownership whereby Angoon is seeking energy self determination for their Native community, for diesel generation communities and for generations to follow. BE IT FURTHER RESOLVED, that the Grand President and the Executive Committee urge the federal government through the Department of Energy, the Department of Agriculture, the Department of Interior and the Federal Energy Regulatory Commission; the State of Alaska and Southeast Conference to support Native leadership and development of hydropower projects at Thayer Lake, Scenery Lake and Ruth Lake for the benefit of all Southeast Alaskans by reducing green house gas emissions, by creating jobs in rural Southeast Alaska and by lowering the energy costs that Southeast Alaskan citizens pay to heat and fuel their homes, schools, and husinesses. , ATTEST: I certify that this resolution was adopted by the ANB Grand Camp Executive Committee on October 15, 2009 ANB Grand Secretary INSIDE PASSAGE ELECTRIC COOPERATIVE August 19, 2011 Dear IPEC Members: We at IPEC are very concerned about the negative effect of high electric rates on your finances and quality of life. We realize that many of you are struggling to pay your bills, and that high electric rates are especially difficult for businesses. Unfortunately, the recent spike in diesel prices has led to yet another rate increase through the fuel surcharge (also known as the Cost of Power Adjustment, or COPA). The PCE program will absorb most or all of the increase for residential consumers, but businesses and other customers not covered by the PCE program will. be subject to the full rate increase. Diesel prices paid by. IPEC have reached all-time highs, even exceeding the summer peaks of 2008. We all know what it's like to fuel -up our cars nowadays, so you might imagine what it's like for IPEC to buy diesel by the tens of thousands of gallons. Fortunately, fuel prices are now on the decline and we are hopeful. that next quarter the fuel surcharge will decrease. I want to assure you that relief is on the way, although in some cases it may take years. IPEC has many power projects on the horizon. that will reduce and stabilize your electric rates, including the Oarti_na Falls hydroelectric project for Hoonah, and an intertie for Kake that would connect it with. Petersburg hydroelectric power. Also, we are in the process of purchasing the .1.0 Mile Hydro for Chil&at Valley & Klukwan. Our goal is to wean IPEC from fossil fuel electric generation, and to rely on diesel for back-up power only. Other projects we are considering for Hoonah include geothermal power from the head of Tenakee Inlet, and the Water Supply Creek hydro potential. Also, we are applying for grant funds to study the Walker Lake hydro potential for Chilkat Valley & Klukw an. We continue to support the Thayer Creek hydro project for Angoon, which is being developed by Kootznoowoo Inc., and they have the sole rights to develop the project. This is a project that would. be owned by the village corporation, and would sell power to IPEC for distribution in Angoon. The laws and regulations of the State of Alaska require that Kootznoowoo sign a power sales agreement with IPEC. My staff has advanced ideas, written a grant — and offered to write more —.for Kootznoowoo, but so far we have no agreement. IPEC believes the Thayer Creek project is the best and most promising renewable energy project that could lead to reduced rates in Angoon, and we stand ready to do whatever we can to advance this project. I IPEC's board of directors will soon meet to discuss many issues that have an effect on your electric rates. The first is a possible transition from our current postage -stamp rate structure, whereby each community pays the same rates, to a community cost -based rate structure. Under this format the costs to serve at each community will. be determined, and each community's rates will be adjusted accordingly. If this happens there will be winners and losers, but doing so will provide a clearer focus on the areas where we can improve through power project development. In short, the winners are likely to be those communities powered by hydroelectricity. f'O. Box 21010 Auke Bay, Alaska 99821 (907) 789-3196 Fax (907) 790-8517 Another program IPEC's board will soon consider is an operations audit. By hiring an independent consultant, we hope to find increased efficiencies over and above those we have already implemented. We have made great strides in achieving near optimal efficiencies at our power plants through our success in winning grants that have funded the installation of new equipment. But, we hope that bringing in an expert to look at our operations from a fresh perspective will help us to identify and implement ideas to achieve even greater cost savings. IPEC is one of few non-profit electric cooperatives in the State of Alaska that is regulated, since cooperatives are, by nature, governed by their members through an elected board of directors. The question our board will soon address is if the cost of regulation is something our rate payers should have to bear. To give you an idea of how much regulatory review can cost, IPEC spent about $139,013 on the most recent rate case, and then had to spend another $22,803 when one of our members intervened and insisted on a hearing. Sometime in the future we may ask for your vote to deregulate IPEC so that you, our members, won't have to pay these costs. Ideally electric utilities enjoy sales growth, which in turn more than offsets increasing costs of operations. But IPEC has experienced a long period of declining sales at the same time that costs of providing electric service have increased. Because we are regulated, IPEC was required to submit a revenue requirement based on the 2008 test year. It showed that we needed a rate adjustment to meet our rising cost of services, and to satisfy our lenders. For IPEC and our rate payers, it seems a no -win situation: to get an increase in rates our rate payers have to bear the costs of presenting our rate adjustment case. Top that off with the situation that developed when a rate payer intervened, and we are all on the hook for those expenses as well. The rate increase was implemented in February 2009, so there will be no further increase from this filing other than the cost of fuel adjustments, which come in the form of a fuel. surcharge. The payments we collect from our members barely meet the minimum requirements of our debt obligations. As a member -owned non. -profit electric cooperative, we don't have to worry about making a profit, but charging any less for electricity would put our utility at risk of loan default. Should this happen, IPEC's ability to provide our members with safe, reliable electric power would be in severe jeopardy. We all want the same thing: lower prices for the electricity we distribute. In a perfect world, increasing demand would more than compensate for increased operational costs, but rural communities throughout Alaska are losing population. At this time, our best defense is to increase efficiencies to lower the cost of operations, and to invest in lower cost energy generation technologies such as hydropower. We look to you, our members, for suggestions. Please feel free to contact me. Sincerely, INSIDE PASSAGE ELECTRIC COOPERATIVE, INC. i�.J 111 Jodi Mitchell, CMA Chief Executive Officer & General Manager - - - ------- I a ti L 10 .07 ro lb ....... ..... 16 P m 06 Ct R -- — — ------ o6 ro d cp .4 0 < o- . .... ... .... . ....... o o io 1- J m� N ;71 - - -------- AT 46 d 0 6 0 d 0 0 Al r4lrl NNo R ent m 4,;w IJrl City of Angoon Motion by the Council to have Kootznoowoo assume management of the Thomas Bay Projects and thereby Consent to Assignment Agreement of Cascade Creek's involvement and responsibilities to Kootznoowoo to take over management of the City owned FERC Permits to manage projects and seek funding on behalf of the City of Angoon which owns the Ruth and Scenery Lake FERC Permits. On motion made by Councilman Frank Jack, III and duly seconded by Councilman Rocky Estrada, Jr. at a Special Meeting of the City of Angoon, the City Council authorizes the Mayor to execute the consent documents to assign Cascade Creek LLC's interest, involvement and responsibilities to Kootznoowoo Inc. in the agreements dated October 5, 2009 to further the projects in a manner consistent with the agreements. ADOPTED, this 23rd day of August, 2011, by the City of Angoon by a vote of 5 Yeas, and 2 Nays, no abstentions, and 0 absences. 32 Mayor Albert Howard Page 1 of 1 SECTION 10 - ADDITIONAL DOCUMENTATION AND CERTIFICATION SUBMIT THE FOLLOWING DOCUMENTS WITH YOUR APPLICATION A. Contact information, resumes of Applicant's Project Manager, key staff, partners, consultants, and suppliers per application form Section 3.1 and 3.4. Applicants are asked to separate resumes submitted with applications, if the individuals do not want their resumes posted. B. Cost Worksheet per application form Section 4.4.4. C. Grant Budget Form per application form Section 9. D. Letters demonstrating local support per application form Section 8. E. An electronic version of the entire application on CD per RFA Section 1.7. F. Authorized Signers Form. G. Governing Body Resolution or other formal action taken by the applicant's governing body or management per RFA Section 1.4 that: Commits the organization to provide the matching resources for project at the match amounts indicated in the application. Authorizes the individual who signs the application has the authority to commit the organization to the obligations under the grant. Provides as point of contact to represent the applicant for purposes of this application. - Certifies the applicant is in compliance with applicable federal, state, and local, laws including existing credit and federal tax obligations. H. CERTIFICATION The undersigned certifies that this application for a renewable energy grant is truthful and correct, and that the applicant is in compliance with, and will continue to comply with, all federal and state laws including existing credit and federal tax obligations and that they can indeed commit the entity to these obligations. Print Albert Howard Name Signature Title Mayor of the City of Angoon Date August 26, 2011